You have spent decades building your business but the time to sell is on the horizon.  What now?  From a valuation perspective, consider the following:

  • Clean Financials– Ensure no personal expenses or assets used for personal use are on the books. Go through your depreciation schedule to exclude any fixed assets that are no longer owned by the company or that will not be included in the sale.
  • Real Estate– Decide whether real estate will be included in the business. If so, obtain value. If not, estimate a fair market rent and draft a rental agreement.
  • Contracts– Determine if contracts can be transferred to a buyer.
  • Buyers– Make a list of possible buyers. Visit with employees to see if one or a group is interested in buying.
  • Selling Price– Contact your certified business appraiser to assist in determining a reasonable sales price. It’s important not to set the price too low and leave money on the table. Conversely, setting the price too high may disgruntle potential buyers.

Working towards selling should begin three to five years prior to the desired sale date.  Call the KTLLP Valuation Team to assist with a successful sale!